ASIA: Chinese economic news today showed that industrial profits have had the biggest fall since 2011 in October. The trade war is the obvious culprit here with the global economy turning down. The industrial profits are down 9.9% year-over-year, and down 5.3% from September alone. US President Trump announced that he and President Xi of […]

ASIA: Top US and Chinese negotiators held an agreement this morning regarding the trade war. The Chinese commerce ministry said they have reached a “common understanding.” They also jointly stressed that they are working on resolving core issues of common concern, and that communication will be open for the remaining issues related to “phase one.” […]

ASIA: The recent elections in Hong Kong have given a landslide victory to pro-democratic parties. However, Beijing reiterated that Hong Kong will always be ruled by China. The foreign minister said at a G20 meeting in Tokyo, “No matter how the situation in Hong Kong changes, it is very clear that Hong Kong is a […]

QUESTION: Hi Mr. Armstrong. I’ve learned more reading your blog last 4 years than working in finance for 20 years. As you say, the average employee in finance hasn’t got a clue about what’s going on. Question: There’s one thing that has bothered me for a long time; uncertainty about numbers regarding GDP, unemployment and […]

  ASIA: Chinese President Xi has said that he wishes to avoid a trade war with the US. However, he expressed if pushed too far he is willing to retaliate. “We want to work for a ‘phase one’ agreement on the basis of mutual respect and equality,” Xi told members of an international forum. This has […]

ASIA: China dismissed ‘external’ rumors about the progression of the US-China trade deal, a Chinese ministry spokesperson has said. Reuters reported that the well anticipated “phase 1” of the deal may not be completed this year, as there are more demands from both sides. The US passed a legislation that will require the US to […]

ASIA: The Peoples Bank of China cut its one-year and five-year loan prime rates by 5 basis points. Yesterday, the central bank ordered banks to use the lowered rate to help bolster the economy. The new rates are 4.15 % for the one-year and 4.80% for the five-year, with the growth rate of China hovering […]

QUESTION: The distinction between the Repo Crisis and Quantitative Easing is the duration and purpose as distinguished from 2007-2009? HS ANSWER: Yes. Under QE, the Fed was buying in 30-year bonds in hope of creating a shortage of long-term paper that would in theory lead to consideration of buying long-term mortgage paper. It was trying […]

ASIA: China and South Korea entered into a defense agreement that could dent South Korea’s relationships with the US and Japan. The agreement will work on developing security ties and ensuring stability in the region. This comes about after China accused the US of meddling with affairs in the region. Recently US President Donald Trump […]

ASIA: A lot of pessimism in the news today regarding the US and China trade deal, with agricultural and concerns over intellectual property being the main sticking points. In addition to this, China came out with a bold statement for the US to stop flexing its muscles in the South China Sea in a separate […]